Auxano Advisors LLC Takes Position in International Business Machines Corporation $IBM

Key Points

• Auxano Advisors purchased 3,075 IBM shares worth approximately $865,000 during the second quarter. Institutional investors and hedge funds collectively own 58.96% of IBM.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $265.90, although several firms recently lowered their targets. IBM’s latest quarterly revenue rose 1.1% year over year to $17.16 billion, while earnings matched estimates at $2.93 per share.
• IBM declared a quarterly dividend of $1.69 per share, equating to an annualized $6.76 payout and a 2.9% yield. The company is also expanding its AI and quantum-computing initiatives, though concerns over growth, valuation and a reported securities-fraud investigation remain risks.

Auxano Advisors LLC purchased a new position in International Business Machines Corporation (NYSE:IBM - Free Report) during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund purchased 3,075 shares of the technology company's stock, valued at approximately $865,000.

Several other hedge funds have also recently added to or reduced their stakes in the company. Basepoint Wealth LLC acquired a new position in International Business Machines during the fourth quarter worth $25,000. Portus Wealth Advisors LLC purchased a new stake in International Business Machines in the 1st quarter valued at $26,000. Cornerstone Financial Management LLC acquired a new stake in shares of International Business Machines in the 4th quarter worth $28,000. SWAN Capital LLC purchased a new position in shares of International Business Machines during the 3rd quarter worth $28,000. Finally, Bare Financial Services Inc raised its holdings in shares of International Business Machines by 114.6% during the 2nd quarter. Bare Financial Services Inc now owns 103 shares of the technology company's stock worth $29,000 after acquiring an additional 55 shares during the period. 58.96% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about International Business Machines

Here are the key news stories impacting International Business Machines this week:

• Positive Sentiment: IBM Ventures expands quantum-computing exposure: IBM Ventures invested in BQP, a physics-acceleration company whose bookings have reportedly increased eightfold. The investment supports IBM’s positioning in quantum and advanced-computing infrastructure, although the deal is unlikely to materially affect near-term earnings. IBM Ventures backs BQP
• Positive Sentiment: AI and quantum themes continue to support the investment case: Analysts highlighted IBM among large technology companies that could benefit from quantum-computing adoption through cloud, software and infrastructure offerings. Retail-investor coverage also identified IBM as a favored long-term AI stock, particularly because of its enterprise focus and hybrid-cloud capabilities. Quantum boom investment ideas
• Neutral Sentiment: Dividend remains a key attraction: IBM is highlighted as a major technology dividend payer, with a quarterly distribution of $1.69 per share. The income profile may appeal to defensive investors, though dividend comparisons alone do not resolve concerns about valuation or growth. Cisco versus IBM dividend comparison
• Neutral Sentiment: IBM is promoting responsible AI adoption: A new study found that AI adoption in U.S. K-12 schools is outpacing institutional readiness, prompting IBM to launch a fellowship for education leaders. The initiative may strengthen IBM’s brand and future relationships but has limited immediate financial impact. IBM K-12 AI study
• Negative Sentiment: Securities-fraud investigation adds headline risk: Bleichmar Fonti & Auld said it is investigating whether IBM made potentially misleading statements about the pace of business deals. The announcement is an allegation, not a finding of wrongdoing, but it could increase legal uncertainty and investor caution. IBM securities investigation
• Negative Sentiment: Broader concerns remain over IBM’s growth outlook: Recent analysis cited AI-driven disruption to legacy services, pricing pressure and reduced estimates as reasons for IBM’s year-to-date weakness, despite support from hybrid cloud and watsonx. Technical coverage also identified resistance near $239, suggesting limited upside until momentum improves. IBM stock outlook

Insider Activity at International Business Machines

In other news, SVP Robert David Thomas sold 25,000 shares of the firm's stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the completion of the transaction, the senior vice president directly owned 47,800 shares in the company, valued at $11,009,296. This trade represents a 34.34% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 0.27% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

IBM has been the subject of a number of analyst reports. Craig Hallum assumed coverage on shares of International Business Machines in a report on Wednesday, August 19th. They issued a "buy" rating for the company. Stifel Nicolaus decreased their target price on shares of International Business Machines from $290.00 to $235.00 and set a "buy" rating on the stock in a report on Monday, July 20th. JPMorgan Chase & Co. dropped their price target on shares of International Business Machines from $291.00 to $250.00 and set an "overweight" rating for the company in a research note on Friday, July 17th. Morgan Stanley cut their price target on shares of International Business Machines from $293.00 to $190.00 and set an "equal weight" rating for the company in a report on Thursday, July 23rd. Finally, Wall Street Zen raised shares of International Business Machines from a "sell" rating to a "hold" rating in a research report on Saturday, August 29th. Sixteen analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, International Business Machines currently has a consensus rating of "Moderate Buy" and an average price target of $265.90.

International Business Machines Trading Up 0.0%

Shares of IBM stock opened at $231.43 on Thursday. The company has a debt-to-equity ratio of 1.63, a current ratio of 0.79 and a quick ratio of 0.74. The firm has a market cap of $218.04 billion, a PE ratio of 20.54, a price-to-earnings-growth ratio of 2.21 and a beta of 0.71. The company has a 50-day moving average of $242.89 and a two-hundred day moving average of $247.41. International Business Machines Corporation has a 1-year low of $199.19 and a 1-year high of $332.46.

International Business Machines (NYSE:IBM - Get Free Report) last released its quarterly earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $2.93. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The business had revenue of $17.16 billion for the quarter, compared to the consensus estimate of $17.46 billion. During the same period in the previous year, the firm earned $2.80 EPS. The business's revenue was up 1.1% on a year-over-year basis. On average, analysts predict that International Business Machines Corporation will post 12.33 EPS for the current year.

International Business Machines Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be paid a dividend of $1.69 per share. This represents a $6.76 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date is Monday, August 10th. International Business Machines's dividend payout ratio is 59.98%.

About International Business Machines

International Business Machines Corporation (IBM) is a global technology and consulting company headquartered in Armonk, New York. Founded in 1911 as the Computing-Tabulating-Recording Company (CTR) and renamed IBM in 1924, the company has evolved from early electromechanical machines to a diversified technology provider serving enterprises and governments worldwide. IBM is publicly traded on the New York Stock Exchange under the ticker symbol IBM.

IBM's principal businesses encompass cloud computing and software, infrastructure and systems, consulting and technology services, and research and development.

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